Bitcoin's 'bubble' is unlike anything we've seen recently(based on the article)

Financial bubbles are often fully recognizable only after they burst — when it's too late. But the speed of bitcoin's rise has already convinced many that its price is well disconnected from its underlying value.

Bitcoin's price has rocketed 646% in very volatile trading this year as its demand and popularity has grown. As the chart above from Bespoke Investment Group illustrates, the rally has been faster than most other severe bubbles in recent history, including tech and homebuilder stocks.

But there's a key difference between bitcoin's rally now and home prices, for example: The fallout from a potential bitcoin price crash is unlikely to damage the broader economy.

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Chart was made on MT5 with BrainTrading system (MT5) from this thread (free to download) as well as the following indicators from CodeBase:

Bitcoin/USD daily price was bounced from resistance level at 7,887 to below for the bullish ranging to be started. If the price breaks 6,030 support level so we may see the secondary correction, otherwise - ranging within the levels.

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Chart was made on MT5 with Brainwashing system/AscTrend system (MT5) from this thread (free to download) together with following indicators:

"Bitcoin Gold, a fork of Bitcoin that aims to democratize mining, has thus far failed to win over investors, its futures dropping to an all-time low the day after its software client went live."

"Futures for this altcoin, which is very similar to Bitcoin but allows a wider range of processors to be involved with mining, fell to as little as $218.34 today on CoinMarketCap, a more than 50% decline from the all-time high of $509.81 they reached on November 11."

Proceed With CautionRisk is inherent to investment, and investors should keep in mind that digital currency is in a very early stage of development when compared to similar asset markets like the stock or bond markets. As for how best to enter positions, Tim Enneking, managing director of Crypto Asset Management, gave specific input. "Don’t chase Bitcoin prices. Decide on a entry point and stick with it," he said. "With Bitcoin, you’re almost always right in terms of foreseeable price action – it’s your timing that might be off. So, be patient, and let the Bitcoin price come to you." Once Bitcoin has reached the right price, Enneking suggested that investors refrain from buying their Bitcoin all at once. Instead, they should "stage in and stage out," meaning they should invest a little at a time, wait for a bit, and then invest some more.

Diversify EffectivelyOver the last several years, Bitcoin has produced some very impressive gains, and media outlets have developed a steady stream of stories about "Bitcoin millionaires." While these stories might tempt an investor to put all their money in Bitcoin, keep in mind that no investment professional would advise an individual to put all their eggs in one basket. When creating a diversified portfolio, investors could consider altcoins, more traditional assets such as stocks and bonds, or both.

Keep Your Coins In WalletsWhile exchanges are a great place to purchase digital currencies, they may not be the best place to hold such assets. "Don't store coins on an exchange," emphasized Eliosoff. "In Bitcoin's short history many, many exchanges have gotten hacked," he noted.

Prepare For VolatilityThe digital currency markets are notoriously volatile, and there are several strategies that investors can use to manage the inevitable price fluctuations.

Intra-day price on H8 chart is on bullish breakout for 9,714 resistance level to be breaking for the bullish breakout to be continuing with 10,000 psy level as a next bullish target.

"In September of 2014, in an interview with Fox Business, Tim Draper claimed Bitcoin would hit $10,000 USD in three years. To put that in perspective, Bitcoin was worth $413 USD at the time of the interview. Even strong believers in bitcoin and cryptocurrency in general were skeptical of such massive overall growth—particularly after the intense fluctuations the market, like the crash of 2011, in which the cryptocurrency declined in value by 94 percent."

"Well, today, Bitcoin surged past $9,000—having increased well over $2,000 in the last month alone—making that wild prediction of yore look a lot more like a safe guess (even leaving aside the value of Bitcoin Cash, currently hovering around $1,600 USD)."

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The chart was made on MT5 with BrainTrading system (MT5) from this thread (free to download) as well as the following indicators from CodeBase:

Bitcoin/USD - bullish breakout; 11,522 is the next key target(adapted from the article)

Daily price broke trendline together with 9,988 resistance level to above for the bullish breakout. The price is breaking 10,798 resistance for the bullish breakout to be continuing with 11,522 as a next target to re-enter.

"This week, we are attempting to highlight a potential move in Bitcoin that could disrupt the global economy and more traditional investment vehicles. For the past few years, Bitcoin has been on a terror to the upside. Recently, a 30% downside price rotation caused a bit of panic in the Crypto world. This -30% decline was fast and left some people wondering what could happen if something deeper were to happen – where would Crypto’s find a bottom. From that -30% low, Bitcoin has recovered to previous highs (near $8000) and have stalled – interesting."

"While discussing Bitcoin with some associates a while back, I heard rumor that a move to Bitcoin CASH was underway and that Bitcoin would collapse as some point in the near future. The people I was meeting with were very well connected in this field and were warning me to alert me in case I had any Bitcoin holdings (which I do). I found it interesting that these people were moving into the Bitcoin CASH market as fast as they could. What did they know that I didn’t know and how could any potential Bitcoin blowout drive the global markets?"

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Chart was made on MT5 with Brainwashing system/AscTrend system (MT5) from this thread (free to download) together with following indicators: